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R eserve Bank o f Dallas


D A LL A S. T E X A S 7 5 2 2 2
Circular No. 74-194
July 16, 1974
To A ll B a n k in g Institutions a n d O thers C oncerned
in the E leventh F ed e ra l Reserve District:
Y o u r a tte n tio n is in v ite d to the fo llo w in g s ta te m e n t g iv in g d eta ils o f tw o issues o f Treasu ry bills:
T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,500,000,000, or thereabouts, to be issued July 25, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the amount of $2,600,000,000, or thereabouts, representing an additional
am ount of bills dated April 25, 1974, and to mature October 24, 1974 (C U S IP No. 912793 U V 6 ), origi­
nally issued in the amount of $1,801,490,000, (an additional $100,065,000 was issued on June 5, 1 9 7 4 ), the
additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $1,900,000,000, or thereabouts, to be dated Jury 25, 1974, and to m ature January 23, 1975,
(C U S IP No. 912793 V S 2 ).
T he bills will be issued for cash and in exchange for Treasury bills maturing July 25, 1974, outstanding in the am ount of
$4,298,755,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and inter­
national monetary authorities, presently hold $2,558,910,000. T hese accounts m ay exchange bills they hold for the bills now
being offered at the average prices of accepted tenders.
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face amount will be payable without interest. T h ey will be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000 $500,000 and $1,000,000 (m aturity v a lu e).
Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, July 22, 1974. Tenders w ill not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied
by Federal R eserve Banks or Branches on application therefor.
Banking institutions and dealers who m ake primary markets in G overnm ent securities and report daily to the Federal
R eserve Bank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon m ay subm it tenders
for account of customers provided the nam es of the customers are set forth in such tenders. Others will not be perm itted to
subm it tenders except for their own accounts. Tenders will be received without deposit from incorporated banks and trust
com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied
by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guar­
anty of paym ent by an incorporated bank or trust company.
Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, following
which public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only
those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any
one bidder w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective
issues. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank
on July 25, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing July 25, 1974.
Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een the par value
of maturing bills accepted in exchange and the issue price of the new bills.
Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills
issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are
excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies)
issued hereunder m ust include in his income tax return, as ordinary gain or loss, the difference betw een th e price paid for the
bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at
maturity during the taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular m ay be obtained from any fe d e r a l R eserve Bank or Branch.
In acco rd an ce w ith th e a b o v e a n n o u n c e m e n t, ten d ers w il l b e rece iv ed a t this b a n k a n d its bran ch es a t El Paso,
Houston a n d San A n to n io up to t w e lv e - th ir t y p .m ., C e n tra l D a y lig h t S aving T im e, M o n d a y , Ju ly 2 2 , 1 9 7 4 . Tenders m a y
not be e n te re d b y te le p h o n e .
Yours v e ry truly,
P. E. C o ld w e ll

Amount, Range and Approxim ate Y ield of A ccepted Tenders


13-W eek B ills
26-W eek B ills
D u e October 17, 1974
D u e January 16, 1975
Total A pplied For______ ___________________________ $3,266,875,000
$2,600,485,000__________________________________ T otal A ccepted
Y ield
Y ield
H ig h -________
7.584% -----------------------------98.042
7.746% ___________________________ Low______________
7.702% ( 1 ) .............................
A v e r a g e ---------------------- 96.018____________ 7.876% ( 1 )
( 1 ) T h e s e ra te s a r e on a b a n k d is c o u n t b asis. T h e e q u iv a le n t c o u p o n issue y ie ld s a r e 7 .9 6 % f o r th e 1 3 -w eek bills, a n d 8 .3 2 % for
th e 2 6 -w eek bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated July 25,1974

Maturing January 23, 1975

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D ate)

Pursuant to the provisions of Treasury department Circular No. 418 (current revision) and the provisions of th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and a t the rate indicated.

NONCOMPETITIVE TENDER $________________________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the averag e
price (in three decimals) of accepted competitive bids.
-----------¥----------------------------------_______ $_______________________
_______ <

-@ -


Prices should he
expressed on th e
basis of 100, w ith
not more than th re e
decimal places, e.g.,
99.925. F r a c t i o n s

must not be used.

Denominations Desired
N um ber of

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account

M atu rity Value

@ $

10,000 $______________

-@ $

15,000 $_____________



By maturing bills
held by-----------------------------------------Payment to be made by_



_@ $ 100,000 $______________


Charge our reserve account on paym ent

$ 500,000 $____________

1 I Draft enclosed

(E ffectual delivery of enclosed d r a f t
shall be on latest day which will p e rm it P r e s e n tm e n t
in o rd er to ob tain irrevocably collected funds on tj» v.
m e n t date)

$ 1 , 000,000 $ __________________

Delivery Instructions:

Hold in Custody — General Account

(S u bscriber's full nam e o r c o rp o ra te title)


Hold in Custody — Investment Ac­

( A d d re ss)


Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account



B y

(A uthorized official sig n a tu re and title)
(F o r the account of, if tend er is fo r a n o th e r subscriber)

( A d d re ss)

1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in m ultiples of
$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, comm uni­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from th is
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th a t he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “----------------------------------------, a copartnership, by-------------------------------------------------------- -----a member of the firm.”
5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the T reasu ry is
material, the tender may be disregarded.

(See reverse for announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102